Taiwan: Clearstream Banking opens new domestic link

06.08.2014

Effective

22 September 2014

Clearstream Banking S.A.1 will implement a domestic link to Taiwan (officially, the Republic of China) whereby CBL will provide settlement and custody services for Taiwanese International Bonds (also referred to as Foreign Currency Denominated Bonds).

These Taiwanese International Bonds include AUD-, JPY-, USD- and CNY-denominated bonds issued with ‘TW’ ISINs. CNY- denominated bonds issued with ‘TW’ ISINs are commonly referred to as Formosa Bonds.

The services will be offered via Deutsche Bank AG, Taipei Branch as the operator of CBL’s account at Taiwan Depository and Clearing Corporation (TDCC - the local central securities depository).

According to the existing market infrastructure, market settlement of Taiwanese International Bonds will be on a free of payment basis only.

Internal (CBL-CBL) settlement can be free of or against payment but Bridge settlement is currently not allowed.

Tax relief/reclaim services will not be available through CBL for the new link and customers are advised to engage a local tax agent for all tax related matters according to market practice.

Settlement deadlines for all Taiwanese International Bonds (CET)

22 September 2014 – 25 October 2014

Instruction

Provisioning

Deadline for Receipt of Valid Instructions

Expected Settlement Results

 

 

Start

End

 

From

To

Receipt

FOP

22:30 SD-1

07:00 SD

07:00 SD

07:00 SD

09:00 SD

Delivery

FOP

22:30 SD-1

07:00 SD

07:00 SD

07:00 SD

09:00 SD

26 October 2014 – 28 March 2015

Instruction

Provisioning

Deadline for Receipt of Valid Instructions

Expected Settlement Results

 

 

Start

End

 

From

To

Receipt

FOP

21:30 SD-1

06:00 SD

06:00 SD

06:00 SD

08:00 SD

Delivery

FOP

21:30 SD-1

06:00 SD

06:00 SD

06:00 SD

08:00 SD

Settlement deadlines for all Taiwanese International Bonds (Taiwan time)

All year (no seasonal variations)

Instruction

Provisioning

Deadline for Receipt of Valid Instructions

Expected Settlement Results

 

 

Start

End

 

From

To

Receipt

FOP

08:30 SD

13:00 SD

13:00 SD

13:00 SD

15:00 SD

Delivery

FOP

08:30 SD

13:00 SD

13:00 SD

13:00 SD

15:00 SD

Disclosure requirements

The Financial Securities Commission (FSC) may request, on an ad-hoc basis, the details of the final beneficial owners of Taiwanese International Bonds.

Additionally, the Central Bank of Taiwan requires a monthly report to be sent to TDCC containing the aggregated holdings (on a security level) of both residents and non-residents of Taiwan.

Further information

More details will be available in a Creation Link Guide, a Market Profile and Disclosure Requirements for the Taiwan market that will be published at launch on the Clearstream website at http://www.clearstream.com/.

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

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1. Registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).